Big Tech Struggles Amid Uncertainty

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as big tech struggles amid uncertainty. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Stock futures rise slightly after Thursday’s sharp sell-off

U.S. stock futures rose on Thursday night after broad declines in the major tech names pushed the major averages lower during regular trading. The Dow ended Thursday’s cash session down more than 1% along with the S&P 500. The Nasdaq Composite dropped more than 3% as Microsoft and Apple each lost more than 4%.

The S&P 500 (SPY) dropped -0.62% today. Sector decliners led advancers 10 to 1 as shown below in the sector graph. Losses ranged from -1.16% to less than 1%. Consumer discretionary (XLY) enjoyed a minor gain of less than 1%.

The Dow Jones index declined -182 points (-0.68%) to close at 26,469. The Nasdaq slumped -98 points (-0.94%) to settle at 10,363.

Big Tech Struggles Amid Uncertainty

All 3 major averages finished in negative territory Friday as Intel’s earnings led to more struggling in the tech sector.

Dow-component Intel plunged more than 16% after the chipmaker offered disappointing guidance for the third quarter and delayed the release of its next-generation chips.

Shares of Facebook, Alphabet, Apple and Microsoft all traded lower. Tesla dropped more than 6%. Amazon and Netflix bucked the negative trend, rising at east 0.6% each.

Big Tech has been the market leader this year as investors grapple with the coronavirus pandemic and its impact on corporate profits. Amazon and Netflix are both up more than 48% year to date. Alphabet and Facebook are up over 12% over that time.

This week, however, this group has struggled. Facebook has fallen more than 4% week to date and Apple dropped 3.6%. Netflix is down 2.4% during that time period. Microsoft and Alphabet are both down 0.4% this week.

This week’s volatile trading action comes amid rising tensions between China and the U.S. China ordered the closure of a U.S. consulate in Chengdu, retaliating after Washington shut the Chinese consulate in Houston earlier this week. China markets plunged in response, with the Shanghai Composite dropping 3.9% overnight.

Investors also fretted about the state of the economy during the coronavirus pandemic as jobless claims rose more than expected last week.

Key Takeaway…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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7/24/20

S&P 500 Sector Graph

Big Tech Struggles Amid Uncertainty

S&P 500 (SPY)

Big Tech Struggles Amid Uncertainty

Communication Services (XLC)

Big Tech Struggles Amid Uncertainty

Consumer Discretionary (XLY)

Big Tech Struggles Amid Uncertainty

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Consumer Staples (XLP)

Big Tech Struggles Amid Uncertainty

Energy (XLE)

Big Tech Struggles Amid Uncertainty

Financials (XLF)

Big Tech Struggles Amid Uncertainty

Real Estate (XLRE)

Big Tech Struggles Amid Uncertainty

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Technology (XLK)

Big Tech Struggles Amid Uncertainty

Utilities (XLU)

S&P 500 Sector Heat Map

 

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